Frequently Asked Questions
How much do I need to retire in India?+
A common rule is to have 25x your annual expenses saved (4% withdrawal rule). For Rs 50,000/month expenses, you need approximately Rs 1.5 crore adjusted for inflation.
What is the 4% rule for retirement?+
The 4% rule says you can withdraw 4% of your retirement corpus annually without running out of money for 30 years. It assumes a diversified investment portfolio.
At what age should I start saving for retirement?+
Start as early as possible. Starting at 25 instead of 35 can result in 2-3x more corpus due to compounding. Even small amounts early make a huge difference.
What is inflation impact on retirement planning?+
Inflation erodes purchasing power. Rs 50,000 today will need Rs 2 lakh per month in 30 years at 5% inflation. Always account for inflation in retirement planning.
Should I use NPS for retirement in India?+
NPS (National Pension System) is excellent for retirement due to tax benefits under Section 80CCD, low costs, and disciplined long-term investing. Combine with equity mutual funds for best results.